Maruti Suzuki leads the pack in domestic UV sales in Q1FY24, increases overall share in PV market

Buoyed by its successful launches over the past six quarters, Maruti Suzuki India Ltd (MSIL) regained some lost grounds in the April-June quarter (Q1FY24). The largest passenger vehicle (PV) manufacturer in the country extended its share in the domestic PV market by over one percentage point in the quarter. Also, it sold the highest number of utility vehicles in the quarter beating rivals Mahindra and Mahindra and Tata Motors.

As per latest data from Society of Indian Automobile Manufacturers (SIAM), MSIL sold 414,055 PV units in the domestic market in Q1, up from 369,154 units in the corresponding quarter previous year, registering 12.2 per cent growth year-on-year. As a result, its share in the domestic PV market surged to 41.57 per cent at the end of June, comparison with 40.54 per cent a year ago. Meanwhile, market shares of Honda Cars, Volkswagen, Renault and Nissan dwindled.

According to industry experts, the carmaker’s success lies in the change in its product strategy. MSIL, the longstanding market leader in India’s PV market, has been the dominant force in the hatchback and sedan space with its overall clout in the small cars segments. However, a detailed look at the numbers reveals that in the June quarter it was the utility vehicles (UV) that lifted MSIL’s numbers. While its other PV sales declined marginally, from 256,536 units in Q1FY23 to 254,978 units in Q1FY24, UV sales zoomed 56.3 per cent to 126,401 units in the quarter from 80,852 units last year. It was also more than M&M, which came in at the second spot with sales of 100,162 units in Q1. Overall, 546,603 UVs were sold in the domestic market in Q1FY24.

Category-wise, while MSIL managed to hold on to its dominant position in the small cars segments, its sales dwindled during the quarter. In the micro PV segment—the traditional strength of MSIL—its domestic sales fell by 17.5 per cent. For MSIL, this segment is represented by some of its once most popular models like Alto and newly launched Spresso. In the compact segment, where MSIL leads with some of its most sold models like Swift, Baleno and Wagon R, sales inched up by 2.9 per cent year-on-year in April-June.

In comparison, in the sub-four meter UV category MSIL’s sales jumped multifold. While in April-June last year it had sold some 26,480 units, this year the number surged to 65,521 units, growing 147.4 per cent.

To further cash in on the changing consumer preferences in India, MSIL is expected to launch at least one new hybrid UV by 2025 and come up with revamped versions of its S-Cross. The company recently introduced two new UVs—Invicto and Jimny—which are aimed at the premium SUV and off-roading segments, respectively.